Report dampens regional science hub hopes

HK lags neighbours in innovation to raise competitiveness

The government's ambition of transforming Hong Kong into a regional science and technology hub suffered a setback yesterday in the wake of a report measuring the city's ability to exploit innovation and technology to boost competitiveness.

Despite securing its highest position in the World Economic Forum survey, based on strong performance in free-market indicators and quality of IT infrastructure, Hong Kong lagged rivals in education and innovation.

Hong Kong finished seventh among 104 economies surveyed, up from 18th place previously but behind regional rival Singapore.

The city-state topped the ranking for the first time, based on its government's 'consistent and continuous efforts in fostering [innovation and communication technology] penetration and usage, as well as the quality of the country's educational system and its able use of foreign technology', according to the report.

Augusto Lopez-Claros, director of the global competitiveness programme at the World Economic Forum, highlighted the Singapore government's level of support for private sector technology initiatives and, based on 'impressive performance just about everywhere', predicted that 'Singapore will remain at the top or near to it for several years to come'.

Hong Kong scored highly in economic indicators, including ease of starting a business, and access to loans and venture capital.